Hayward v. Ventura Volvo

Opinion

GILBERT, P. J.

Plaintiff bought a car that does not work. He retained a lawyer on a contingency fee to bring an action under the Consumers Legal Remedies Act (Civ. Code, § 1750 et seq.).

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He prevailed and the court awarded reasonable attorney’s fees under the act. Here we hold that the court is not limited in awarding fees to those incurred by plaintiff under the contingency fee contract. We affirm.

[511]

Facts

Larry Hayward sued Lars Lundgren Enterprises, Inc., doing business as Ventura Volvo (hereafter Ventura Volvo). Hayward alleged that he purchased a used car from Ventura Volvo along with an extended warranty. When the engine needed replacement, Ventura Volvo refused to honor the warranty.

A jury awarded Hayward $14,812 compensatory damages and a $29,624 civil penalty against Ventura Volvo for its willful violation of the warranty. (§ 1794, subd. (c).)

Hayward moved for an award of attorney’s fees pursuant to section 1780, subdivision (d). He requested $103,419 as the reasonable value of his attorney’s services. Ventura Volvo objected that the award is limited to the fees actually incurred by plaintiff under the contingency fee contract.

The contract between Hayward and his attorney called for no fee beyond the $2,000 retainer if there is no recovery. If there is a recovery, the contract stated that the attorney would be paid “all attorney’s fees paid by Defendant plus forty percent (40%) of any civil penalty awarded or offered.” Ventura Volvo asserted that Hayward’s fee award was limited to $12,000, approximately 40 percent of the $29,624 civil penalty.

The trial court rejected Ventura Volvo’s argument and awarded Hayward reasonable attorney’s fees of $98,000.

Discussion

Ventura Volvo does not challenge the reasonableness of the amount of attorney’s fees awarded. It contends only that section 1780, subdivision (d) limits the fee award to those incurred by plaintiff pursuant to agreement with his attorney.